Cryptocurrency giants Circle and Binance are joining forces to promote the wider adoption of stablecoins.
The partnership is designed to expand the adoption of Circle’s USDC stablecoin and support the development of the digital asset ecosystem, according to a Wednesday (Dec. 11) press release.
“With the growth and worldwide adoption of USDC as one of the most powerful utilities for money on the internet, this collaboration brings together a trusted and compliant digital dollar with the largest platform in the world for using digital assets,” the release said.
The collaboration will see Binance make USDC more available to its 240 million users, while also adopting USDC as a “vital dollar stablecoin” for its corporate treasury, per the release.
Circle will give Binance technological and liquidity support, while also working with Binance to build relationships in the global finance and commerce spaces, as mainstream companies embrace crypto infrastructure and stablecoins.
“With Binance rapidly becoming the world’s leading financial super app, and stablecoin adoption and utility at the core of this future financial system, this is a tremendous opportunity for USDC as it becomes ubiquitous on the Binance platform,” Circle Chairman and CEO Jeremy Allaire said in the release.
Binance CEO Richard Teng called USDC one of the “most preeminent products in the world.”
“Through our strategic partnership, our users will have even more opportunities to use USDC on our platform, including more USDC trading pairs, special promotions on USDC across trading and other products on Binance,” he said in the release.
This week, PYMNTS explored the use of stablecoins and their role in helping alleviate pressures in cross-border payments, such as high fees, slow processing times and opaque intermediaries.
Stablecoins offer an alternative by allowing near-instantaneous transfers, lowering costs and enhancing transparency through blockchain technology, the report said.
“However, their utility has been somewhat limited by the difficulty of moving funds between stablecoins and fiat currencies — a gap that on-ramp and off-ramp services aim to fill,” PYMNTS reported. “For banks, this functionality highlights the emergence of a potentially stark choice: adapt to a changing payments landscape or risk disintermediation.”
The challenge for banks is that stablecoins present a threat. If consumers and businesses find them easier and cheaper, they may bypass traditional banking systems altogether.
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